8/31/2009 @ 4:49PM

Brazil Unveils Proposed Controls On New Oil And Gas Finds

President Luiz Inácio Lula da Silva submitted to Brazil’s congress his new proposals that call on Petróleo Brasileo, or
Petrobras
, to have greater–and in some cases exclusive–authority in what’s known as the “pre-salt plays,” a new and potentially vast source of offshore oil and gas touted as being among the best new offshore discoveries in the world. The state-owned oil company announced da Silva’s move Monday.

The proposals, rumored for months, outline ways to give Brazil and Brazilians a larger piece of likely profits.
Petrobras
will at least operate all remaining pre-salt blocks left to auction with a minimum 30% stake, allowing other companies to take smaller roles in the investments. (See: “Big Oil Sweats As Brazil Debates New Controls.”)

Still, Petrobras says the Brazilian government will also be able to hire the company exclusively on blocks in the pre-salt. There is also a proposal for a new state-owned company to represent the interests of the Brazilian government on new contracts.